Deutsche Telekom wants to take over Orange/FT to become even bigger. Iain Morris reports, "Europe desperately needs telco giants." Actually, DT is already a giant and captures almost all the economies of sale. Like most CEOs, Timotheus Höttges wants a bigger empire. His policy and pr budget is enough to guarantee many echo his call. Does the world, and especially the Internet, need more behemoths?
When I look at which companies are actually succeeding and investing, medium-sized often telcos do better than giants. The three Koreans, a fraction of the size of Deutsche Telecom, are the world leaders in 5G. Little Switzerland is the European leader in 5G, with relatively small Sunrise already connecting 350 small towns and villages. In the US, the largest 5G offering as I write is from #4 Sprint, although the larger companies will soon come in.
In fiber, Orange and Telefonica Spain are far ahead of the US giants, Verizon and AT&T. The best fiber network in the US is being built in Northern California by Sonic, where a symmetrical gigabit sells for about $50/month.
In the fight for customers, #3 T-Mobile USA has been clobbering AT&T & Verizon for years. In Korean 5G, LG Uplus, the smallest, is gaining market share.
In finances, giant China Mobile is suffering, while relatively small Telstra is one of the most profitable.
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